FDIC Law, Regulations, Related Acts

6500 - Consumer Financial Protection Bureau

Appendix L to Part 1026Assumed Loan Periods for Computations of
Total Annual Loan Cost Rates

(a) Required tables. In calculating the total annual
loan cost rates in accordance with Appendix K of this part, creditors
shall assume three loan periods, as determined by the following table.

(b) Loan periods. (1) Loan Period 1 is a two-year loan
period.

(2) Loan Period 2 is the life expectancy in years of the youngest
borrower to become obligated on the reverse mortgage loan, as shown in
the U.S. Decennial Life Tables for 1979-1981 for females, rounded to
the nearest whole year.

(3) Loan Period 3 is the life expectancy figure in Loan Period 3,
multiplied by 1.4 and rounded to the nearest full year (life expectancy
figures at .5 have been rounded up to 1).

(4) At the creditor's option, an additional period may be
included, which is the life expectancy figure in Loan Period 2,
multiplied by .5 and rounded to the nearest full year (life expectancy
figures at .5 have been rounded up to 1).